Vietnam's largest island Phu Quoc struggles with occupancy rates due to costly airfares

By Tu Nguyen   August 30, 2024 | 02:00 am PT
Vietnam's largest island Phu Quoc struggles with occupancy rates due to costly airfares
Kem beach in Phu Quoc Island, southern Vietnam. Photo by SG
High airfares are deterring tourists from visiting Phu Quoc during the National Day holiday, as hotels across the country's biggest island recorded occupancy rates of only 30%.

Tra My, a resident of Hanoi, abandoned her plan to visit Phu Quoc after checking airfare prices. To secure a round-trip ticket with convenient flight times during the holiday between Aug. 31 and Sept. 3, she would have had to spend over VND6 million (US$240).

My expressed that this cost was too expensive, especially considering that her family of three would have to spend up to VND20 million on transportation alone.

Data from Mustgo, an online booking platform with 2,000 hotel partners nationwide, indicated that Vietnamese tourists accounted for only 15% of arrivals in Phu Quoc during the holiday, and most hotels have since removed surcharges.

Five-star hotels with over 500 rooms on both the northern and southern parts of the island reported occupancy rates below 40%.

Nguyen Kim Hang, manager of the 3-star Gaia Hotel in Duong Dong Town, said the average room occupancy rate during the holiday was just 30%.

She pointed out Phu Quoc has been suffering from a lack of domestic tourists this year, with high airfares being a major factor.

Minh An, owner of a 3-star hotel with 100 rooms in Duong Dong, also said high airfares are discouraging domestic tourists from visiting Phu Quoc.

The hotel's occupancy rate on Sept. 2 was about 30%, "the lowest ever," An stated.

The number of tourists traveling in groups organized by companies has also declined. In previous years, a round-trip ticket from Hanoi to Phu Quoc cost around VND3 million, but current airfares are nearly double, giving tourists little reason to choose Phu Quoc at such high prices.

Doan Minh Tuan, director of the Ngoc Hien pearl facility in Phu Quoc, said the number of Vietnamese tourists during the holiday dropped by 50-60% compared to last year due to high airfares. Tuan's business continues to operate well thanks to renting cars or offering sea walking services to foreign tourists.

A survey conducted on Aug. 29 showed that round-trip airfares from Hanoi to Phu Quoc from August 30 to September 3 ranged VND6-8 million for favorable flight times.

Pham Anh Vu, deputy general director of Viet Media Travel Company, agreed that the number of customers booking tours to Phu Quoc during the holiday was slow due to high airfares and limited flight availability.

Phu Quoc, Vietnam's largest island, is also struggling to attract tourists traveling by sea. A representative of Phu Quoc Express stated that boat ticket prices on holidays remain the same as on regular days, but both the Rach Gia - Phu Quoc and Ha Tien - Phu Quoc routes are still waiting for customers.

According to Mustgo data, flight-dependent destinations in the central region, such as Da Nang and Nha Trang, also reported low hotel occupancy rates of around 40% during the holiday.

In contrast, destinations with easy road access, low transportation costs and favorable weather, such as Sa Pa and Phan Thiet, reported high occupancy rates.

 
 
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